Xbox Unveils Financial Results Following the Starfield Launch, and the Outlook Is Mostly Positive

Microsoft has just released its first-quarter financial results for the 2024 fiscal year, and there's positive news for Xbox. Despite a decline in hardware sales, the release of Starfield has had a significant impact on the overall gaming revenue.

According to Microsoft's press release, Xbox content and services, which include the Xbox Game Pass gaming subscription service, have seen a 13% increase in revenue compared to the previous quarter. This boost in revenue comes on the heels of the launch of Starfield, which has been highly anticipated and is considered one of the most important releases in Xbox's history. Starfield managed to attract 10 million players in just three weeks, making it the biggest launch in Bethesda Game Studios' history.

Xbox's boost in revenue was further supported by a price increase on Game Pass, which contributed to the positive financial results.

However, it wasn't all good news for Xbox, as hardware revenue declined by 7%. This decline was part of a broader trend where revenue from Microsoft hardware devices, including Surface tablets, dropped by around 22%.

While the report does not provide a direct explanation for the decline in Xbox hardware sales during the quarter, it's worth noting that there have been leaks of highly confidential documents from Microsoft in recent times. Some of these documents have outlined plans for mid-generation model refreshes of both the Xbox Series X and Series S slated for next year, with a next-generation Xbox console planned for release around 2028. These leaks may have contributed to uncertainty among potential hardware buyers, which could have impacted sales.

It's important to note that this earnings report is the first to be published by Microsoft since its successful acquisition of Activision Blizzard a few weeks ago. Although it may not have had a significant impact on the financial results for 2023, Microsoft has ambitious plans to incorporate a vast catalog of Activision Blizzard games into Xbox Game Pass starting next year.

For a more comprehensive insight into Xbox's future plans, there's a partner direct event scheduled for tomorrow. However, it's important to clarify that there are no plans to make any specific announcements related to Activision Blizzard during this event. You can find more details about the event by checking out the official announcement.